Tuesday 5 February, 2013
CEO succession is a topic every organisation will address at
some point in time. Whether it's because the Board is in favour of a
fresh face, or due to the abrupt departure of a CEO. The choice to
parachute in an experienced CEO or promote from within is not always a
clear one. Too often businesses fail to consider long term strategies to
encourage leadership prospects from within their own organisations.
One common
characteristic of many successful companies is the adoption of a robust
succession plan, and the implementation of processes that focus on
developing leaders. This ensures senior leaders are aligned with the
organisation's strategic goals and potential leaders are identified and
nurtured. This allows for the smooth transition of leadership when one
CEO replaces another and a solid foundation to move the business
forward.
It is critical to ensure that a CEO is the right fit for an organisation. Developing internal successors has proven to guarantee longer tenure rates, as opposed to appointing outside candidates.
Making succession a priority has other positive benefits outside of finding and developing the next CEO. Organisations that plan for succession often promote proactive systems for leadership development. This includes coaching, mentoring and feedback tools to help potential leaders grow their capacity to handle increasing complexity. This naturally leads to greater engagement from staff members, encouraging increased productivity, innovation and collaboration.
Here are four tips on how to improve your internal succession plans:
- Understand what motivates your team
Senior management needs to give up on the idea that all employees want to progress to leadership roles or be CEOs. This may not be the definition of career success for every employee. A rewarding career may constitute quality training, challenging client work, client contact, autonomy in decision making, leadership development or appropriate remuneration for their effort and the value they add.
- Have a clear vision
CEOs and company leaders need to have a clear vision for their organisation. What is its purpose? What does it stand for? Once this is clear, they have a basis on which to shape career and succession plans for their employees.
- Think long-term
Succession planning is not a 12 month process. Company leaders need to be considering succession at least five years in advance to manage the process effectively. This includes identifying employees with potential and the desire for leadership.
- Provide leadership development support to potential successors
This means more than just providing them with the right set of skills, but also enabling them to participate in executive coaching and leadership development programs aimed at building their capacity to deal with complex operating environments.
Source:ceoonline.com
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